Earnings season is BACK! Join me for a live session at 2 p.m. ET TODAY ahead of FDX and GIS reports — the scanner is on FIRE already!
Earnings season is once again underway, and it’s been an incredibly busy day that started off with Carnival Cruise (CCL) sailing over 8% this morning on a beat and guidance raise…
And guess what just so happened to hit our News Flow Scanner late Monday…
That call option was about $0.92 at the time of purchase, and as of lunchtime today, about $1.75 — BANG!
We also saw a BIG move in Nvidia (NVDA) this morning, with shares popping over 6%. This $1.2 million order for deep in-the-money calls hit the News Flow Scanner this morning, and then caught most of the day’s big bounce (with the underlying moving about 3.6% higher).
When you see deep ITM calls like this with a delta around 1.0, that means it’s a stock replacement trade.
And that’s not all…
We saw a million-dollar bet in Micron (MU) calls ahead of earnings after the close Wednesday (listed below), another $1.4 million bet (also listed below) in Supermicro Computer (SMCI), and Chewy (CHWY) popped darn near 9% with repeat call buying — EIGHT orders in total!
And those CHWY calls (the latest order is listed below) quickly exploded in value, so it’s time for a quick lesson in implied volatility…
Let’s look at the July monthly expiration, $35 strike calls that hit the News Flow Scanner at 10:45 a.m. for around $0.75 a contract — which then doubled in a matter of minutes.
If you’re wondering why those CHWY calls skyrocketed so quickly, it all boils down to one thing: implied volatility.
Since last week, IV has doubled, and it’s all thanks to the influx of call options we see hitting our News Flow Scanner. This surge in IV means that market makers are feeling the heat as we approach earnings, so they’re jacking up the price of options.
What does this mean for traders like us? Higher IV translates to more expensive options, reflecting the increased uncertainty and potential for big moves in a particular stock. It’s a clear sign that market makers are bracing for significant volatility, and we can use this to our advantage.
Keep an eye on CHWY and other stocks with rising IV as we navigate these turbulent market waters together. Stay sharp, and let’s capitalize on these opportunities!
On top of all that, I sold more of the Verizon (VZ) calls we entered during a live trading session last week, and have discussed multiple times in this newsletter since then. I originally bought 40 contracts and I sold the latest batch at my 100% price target — another BANG!
The best part is we traded these live together, so be sure and stay on the lookout for the next live session we do…
Here’s a hint: We may see during today’s 2 p.m. ET session!
Tuesday’s Order Flow:
- MU Jul24 Strike: 146 Calls premium: $1,169,310 ASK BULLISH
Trade Date: June 25, 2024 Trade Time: 10:54 am - SMCI Jun24 28th Strike: 860 Calls premium: $1,401,320 ASK BULLISH
Trade Date: June 25, 2024 Trade Time: 11:13 am - CHWY Jul24 Strike: 29 Calls premium: $484,800 ASK BULLISH
Trade Date: June 25, 2024 Trade Time: 11:20 am
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
Lance Ippolito Trading Team
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
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And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
Check Out This Order Flow — It’s Been Spot-On!
The order flow this week has already been insane.
From countless ways to play GME’s short squeeze to ADBE – and even SMCI and ARM…
Now these are all bullish opportunities…
And they’re the exact kind I’ll be looking out for on MU, FDX, MKC and a few others that report earnings between Monday and Thursday this week.
We’ll be live at 2 p.m. ET today, June 25, so come see what’s hitting!
I see a few 6-figure bulls already hit… we’ll see if there’s more to come.
That said, if you’re interested in seeing how we take advantage of bullish order flows like these…
I’ll Give You the Full Rundown at 2 p.m. ET!
